FAQs on coverage for
Windscreen, Sun-roof, Soft-top & other Accessories

Q: What is windscreen coverage?

A: Basically, a comprehensive motor
insurance policy would cover any part of the vehicle that is factory-fitted,
including the windscreen, from accidental damage. For any claim made, the excess
would apply and the NCD reduced accordingly.

However, there are some parts, eg the
windscreen that are more prone to breakage or accident damage. Vehicle owners
want to have a coverage without affecting the NCD and paying the excess.

Thus, the insurers came up with a
separate coverage for windscreen and normally package this into the
comprehensive policy. You may look at it as a mini-policy attached to the main
policy. This covers the windscreen only. If you make a claim under this
mini-policy, the main policy excess is not applicable*. The NCD is also NOT
affected. Once such a claim is made, there is no more coverage for the remaining
part of the main policy unless the owner pays a reinstatement premium to the
insurer to have another mini-policy incepted.

* most windscreen policies have NO
excess but do refer to the exact policy conditions for individual cases.

Q: What is reinstatement charge for
windscreen policy? How does it work?

A: Supposed Mr TAN bought a
comprehensive insurance coverage for 1 year: 1 Jan 2005 to 31 Dec 2005. On 10
Mar 2005, his windscreen was damaged and he claimed under the mini-policy. The
insurer pays the claim and the mini policy lapses, ie from 11 Mar 2005 to 31 Dec
2005 (the remaining period of the policy) there is no additional coverage for
windscreen. Thus, if during this period, eg on 15 July 2005, the windscreen is
damaged again. If Mr TAN wants to claim, he would need to claim under his main
policy, ie his NCD would be reduced and the main policy excess would apply.

To be able to enjoy this mini-policy
coverage, Mr TAN would have to pay a reinstatement charge, which can range from
$60 to $100, depending on his vehicle’s make & model. If he paid this
reinstatement charge, he would have the mini-policy to cover him again, ie from
11 Mar 2005 to 31 Dec 2005 (the remaining period of the policy), he can claim
for any windscreen damage without affecting his NCD or paying the main policy
excess.

Q: Is there any limit on the windscreen
claim?

A: That depends on what is specified in
the policy. For most policies, the coverage is on market value or full value
basis. The means the insurer is obligated to pay whatever is the market value of
the cost of replacement.

However, in some cases, the insurer may
specify a limit, eg $1,000. This means that any claim should NOT exceed $1,000.
If the cost of repair of the windscreen is $1,300, the insurer would pay to its
limit of $1,000. The insured would have to foot the rest.

Q: When should I choose to pay
reinstatement for coverage?

A: If the remaining period of the
policy is short (using the above example, if the windscreen damage occurred on 1
Dec 2005), you may just wish to save on the reinstatement charge but do note
that if any windscreen damage does occur during this period, there is no
mini-policy to cover you. Usually, when the main policy is renewed, you get the
windscreen coverage again!

Q: What about the coverage for
sun-roof?

A: In the case of your sun-roof, you
may opt to buy additional coverage if you want to also cover it in a similar
way, ie the mini-policy concept. By default**, the policy does not have such a
additional coverage for your sun-roof so you are covered only by the main
policy, where the excess is applicable and the NCD shall be reduced upon a
claim.

** not all vehicles come fitted with
sun-roof, unlike windscreen, so insurers do not factor this in a typical policy.

Normally, the vehicle owner would need
to specify the sum insured, eg you can choose to cover the sun-roof for say
$1,000. The insurer would then compute a premium for this coverage. With this
coverage, the vehicle owner would be able to claim up to $1,000 to replace the
sun-roof should the sun-roof be damaged. The NCD will NOT be affected and the
main policy excess also will NOT apply.

After a claim, the mini-policy, once
again, lapses, as in the case of windscreen described earlier. To have this
mini-policy coverage again, the insured would need to pay a reinstatement
charge, which is similar to that of the windscreen case.

Q: What about the coverage for
moon-roof & soft-top, hard-top etc?

A: Refer to our answer for sun-roof.

Q: What about other accessories, eg
hi-fi system or sports rims? Do I need to buy such coverage?

A: As long as the accessory is
factory-fitted, the main policy shall cover, subject to excess and NCD reduction
upon a claim.

However, if the accessory is NOT
factory-fitted, then you cannot claim under the main policy. Eg the vehicle
comes factory-fitted with standard rims that costs $400 and you upgraded to an
expensive set of sports rims costing $1,500. In the event of damage, the insurer
would be liable to pay up to $400, the value for the standard rims.

If the accessory is NOT even a standard
item, ie body kit or spoiler, then the insurer would NOT be responsible to pay.

In the above cases, the vehicle owner
would need purchase the additional coverage, normally by specifying a sum
insured, to have these accessories covered. Upon a claim, a reinstatement charge
applies, like the case of the windscreen.